This Nano-Cap Medical Device Stock Soared 50% Today – What’s The Aviation Connection?

• Catheter Precision had initially acquired a 20% stake in Flyte in February before buying out the remaining 80% earlier on Tuesday.
• Creatd will receive around $6 million in cash and roughly $6 million in convertible preferred stock of VTAK, making it a significant shareholder.
• Earlier this month, Catheter Precision signed an agreement to raise about $1.9 million through a private placement.

Shares of Catheter Precision (VTAK) jumped 50% on Tuesday after the company announced it had completed the acquisition of Fly Flyte, having bought out an 80% stake from Creatd.

Flyte runs regional aviation services using Cirrus Vision Jets on short-haul routes where commercial airline service is limited or unavailable. It generates revenue through aircraft equipped with advanced safety systems such as whole-aircraft parachute technology and Safe Return autonomous landing capability.

Creatd To Receive $6M In Cash, $6M In Convertible Preferred Stock

As part of the transaction, Creatd will receive around $6 million in cash and roughly $6 million in convertible preferred stock of VTAK. The two companies will collaborate on developing an aviation and Electric Vertical Take-Off and Landing (eVTOL) logistics platform.

The deal makes Creatd a significant shareholder in VTAK, while it continues to pursue its plan to secure a national exchange listing later this year.

Catheter Precision had initially acquired a 20% stake in Flyte in February, stating that the investment provides immediate exposure to the fast-growing private aviation sector and supports an asset-backed, scalable fleet expansion model.

Fundraising Worth Around $1.9 Million

Earlier this month, Catheter Precision signed a securities purchase agreement with investors to raise about $1.9 million through a private placement of Series C-1 Convertible Preferred Stock, according to an SEC filing. The shares can initially convert into up to 1.3 million common shares at a conversion price of $1.43 per share.

Investors also agreed to purchase additional Series C-2 and Series C-3 convertible preferred shares. The company plans to use the proceeds for working capital, restructuring its legacy catheter business, resolving liabilities, and reducing operating expenses.

This came after the company completed a strategic financing deal with institutional investors worth up to $36.5 million last month.

How Did Stocktwits Users React?

Retail sentiment for VTAK on Stocktwits flipped to ‘extremely bullish’ from ‘bearish’ a day earlier, amid ‘extremely high’ message volumes.

One user expects the momentum to push the stock to $3 from its current price of around $2.

Another user said that since the revenue is “asset-backed,” it will grow when new jets are added to the service.

VTAK shares have gained around 10% so far this year.

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